Paul and Ashley Moody were supposed to turn Marble City Market around, but food hall co-owner Doug White says the couple he hired to run the business embezzled more than $190,000.
The Moodys are well-known figures in the local restaurant scene as owners of Knoxville-based burger company Smash City, which also has a location in Omaha, Nebraska, and briefly ran a West Knoxville outlet of Honey Bee Coffee, which is now embroiled in its own financial struggles under new ownership.
The Moodys took over management of Marble City Market in 2022 after it parted ways with its previous manager, Hospitality HQ, which had faced criticism amid a string of disagreements with vendors and layoffs. Knox News reported in June 2023 that the Moodys would be leaving their new positions as managers, which they said was by mutual agreement with the owners.
We now know that White contacted police on July 18, 2023 to report that Paul Moody had embezzled approximately $190,900 from RSQ Management. In a Knoxville Police Department report, White is identified as a co-owner of RSQ, which also owns Marble City Market.
In a report based on White’s account, Paul Moody claims:
He stole $876 in cash and wrote a check for $20,000 to Smash City without White’s authorization; made “multiple deposits” totaling $36,595.94 to his own account rather than to RSQ Management’s account; and made two transfers totaling $30,999.76 from RSQ Management to his own account in January 2023.
According to the report, White was instructed to provide copies of the fraudulent invoices and transactions to police and file embezzlement charges. Paul and Ashley Moody are now charged with theft over $250,000, a Class A felony in Tennessee.
A trial date has been set for October 8th.
Knox News spoke briefly with Paul Moody on July 8 and asked to speak with him about the allegations. He said he would call him back but never did. Knox News also spoke with representatives from the food hall’s ownership group, all of whom declined to comment.
Paul Moody did not respond to three text messages seeking comment sent between July 8 and July 11.
Around the time the Moodys retired as managers of Marble City Market, they also announced plans to move Smash City out of its food hall concession stand, with the company relocating to the former Olivia’s location at 211 S. Central St., where it remains open today.
Ryan Wilusz is Growth & Development Editor. Phone: 865-317-5138. Email: ryan.wilusz@knoxnews.com. Instagram: @knoxscruff.
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